Advertising and Promotion
Companies have to develop good products or services, price them attractively, and make them accessible to their target customers. But this is not enough: they also have to use various promotional tools to generate sales. Even a good, attractively priced product that clearly satisfies a need has to be made known to its target customers. The producer has to develop product or brand awareness i.e. inform potential customers (distributors, retailers) about the product’s existence, its features, its advantages, and so on. According to the well-known ‘Four Ps’ of the marketing mix (product, place, promotion and price), this is clearly a matter of promotion. There are four major promotional tools: sales promotions, public relations, personal selling and advertising.
Public relations (PR) is concerned with maintaining, improving or protecting the image of a company or product. The most important element of PR is publicity which (as opposed to advertising) is any mention of a company’s products that is not paid for, in any medium read, viewed or heard by a company’s potential customers. A lot of research has shown that people are more likely to believe publicity than advertising.
Sales promotions such as free samples, coupons, price reductions are designed to stimulate sales of a product, to strengthen brand loyalty among retailers or to gain entry to new markets.
Personal selling is the most expensive promotional tool, and is used sparingly. The majority of new product ideas come from customers via sales representatives.
Advertising is considered a synonym of marketing communications because it is the most important promotional tool using mass media. Advertising informs consumers about the existence and benefits of products and services, draws attention to the ‘unique selling points’(USPs) of products (these are the qualities that make a product different from competitors’ products), and persuades them to buy.
There exist many different forms of advertising, such as direct mail, billboards, newspapers and magazines, radio, television, and the Internet. The best form of advertising is the kind that generates the most business income proportional to the amount of money that can be spent. In this respect, word-of-mouth advertising costs the least: people just tell their friends about the benefits of products or services that they have purchased. Yet no providers of goods or services rely on this alone, but use paid advertising instead. Indeed, many organizations also use institutional or prestige advertising, which is designed to build up their reputation rather than to sell particular products.
The world of outdoor advertising involves billboards, transport and ‘street furniture’ (e.g. bus shelters and public toilets). It is one of the fastest-growing segments, having doubled its market share in recent years.
New forms of advertising are emerging and they are overtaking traditional media because of a shift towards internet advertising. Companies are experimenting in new ways to reach customers via the World Wide Web, e.g. social network advertising on sites like Facebook.
A popular type of creative communication on television is the infomercial (information + commercial) or programme-length advertising. During an ‘informative programme’ a product is presented and demonstrated to the consumer, who is urged to order it by telephone.
These days, advertisers have come up with new ways of promoting their products. For example, product placement is now common. This is advertising in books, TV programmes or films where a character, preferably played by a famous actor, uses a particular product. For example, Tom Cruise’s character in the movie “Minority Report” had a computer with the Nokia logo on it, and his watch was clearly made by Bulgari. James Bond movies are, in some respect, one long advert for vodka, watches and cars. Twenty companies will see their products in the new Bond film, having paid $70ml (₤44ml) for the privilege.
TV commercials are a very effective medium for advertisers, though these are very expensive. If an organization wants to have a 30-second TV advert during the annual Super-bowl game in the United States, they have to pay about 2.5 $ million.
Perhaps the most interesting development is the use of famous personalities to endorse a product. The basketball player, Michael Jordan, endorsed Nike products and wore them while playing. David Beckham, the footballer, endorsed Police sunglasses. Endorsements, even though very expensive, certainly increase a product’s sales.
But, of couse, a large variety of other communications instruments exist, for example, sponsorship, point-of-purchase communications (such as displays within the shop), exhibitions and trade fairs, direct marketing (direct mailings, telemarketing), e-communications (the internet, e-commerce, mobile marketing, interactive digital television).
Exercise 14 Answer the following questions:
1. What is promotion? Why is it an integral part of ‘four Ps’ marketing formula? 2. Explain the concept of USPs. 3. What are the main promotional tools? 4. How is personal selling used? 5. Why do companies have PR managers? 6. What are the main goals of advertising? 7. What is the best form of advertising? 8. What innovations have appeared recently in the world of advertising? 9. Is product placement popular in our books and films? Can you give any examples? 10. Do you like social network advertising? Why? 11. How can product placement or endorsement influence your decision to buy? 12. Explain the AIDA formula.
Exercise 15 Read the text again and find definitions to the following notions.
1. Promotion. 2. Public relations. 3. Publicity. 4. Sales promotions. 5. Personal selling. 6. Advertising. 7. Endorsement. 8. Product placement.9. Commercial. 10. USP. 11. Institutional advertising. 12. Brand awareness.
Exercise 16 There exist different types of discounts which are an effective mechanism of promotion. Match the discounts below to their definitions.
1 trade discount 2 bulk discount 3 promotional discount 4 cash discount 5 professional discount 6 employee discount 7 seasonal discount |
a. a discount to buyers purchasing a large amount b. a discount for payment in cash c. a discount offered on goods sold at the ‘wrong’ time of the year, such as ski equipment in summer d. a discount to people in a particular field, e.g. when doctors pay a reduced price for medicine e. a discount for staff f. a fixed percentage offered to a distributor g. a lower retail price for a special sale |
Are all of these discounts offered in your country? What discounts have you ever used? How do they help companies reach their goals?
Exercise 17 Match the words dealing with advertising with their meanings.
sponsorship ▪ commercial ▪ promote ▪ misleading ▪ slogan ▪ endorse ▪ logo |
1. an advert on TV or radio; 2. financial support a company gives in order to get publicity for themselves; 3. a short phrase that is easy to remember; 4. to say publicly that you support or approve of something; 5. giving the wrong idea or impression; 6. special design / symbol that a company puts on all its products or adverts; 7. to try to sell a product, e.g. by special advertising.
Exercise 18 Read the dialogue and choose the correct answer.
A: OK, let’s brainstorm how we’re going to promote / endorse this product.
B: Well, we could get a famous celebrity like David Beckham to endorse it.
A: I think that would be much too expensive. Commercial / Sponsorship of a TV programme would also cost a lot. And a TV logo / commercial is out for the same reason. I’ve seen some great TV shots which are visually beautiful and really eye-catching / shocking, often set in romantic or dull / exotic locations. But I don’t think they’ve been very effective / witty as people can’t remember the product they’re advertising.
B: I agree, but we don’t want something catchy / dull and boring. How about advertising on the radio – would the budget run to that?
A: Yes, we could stretch to that.
B: And would you like something witty and eye-catching / catchy?
A: Maybe. I want something new and dull / original. But most importantly, it must be persuasive / misleading. It must get people to buy the product.
Exercise 19 Project: Promotional strategies.
a) Divide into two groups. Each team is responsible for promoting one of the following:
Virtual Passenger Special features:
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DESEC Tracklayer Special features:
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Decide exactly what your product is, what is special about it, and which tools you would use to promote it. Imagine that you have a generous budget, and are thus able to employ several different tactics.
b) You are in charge of starting ad campaign to promote a new product. Write an advert for the product, based on the information above. Decide on your target market and how to make your product sound attractive. Try using the approach suggested underneath.
1. Target market Who do you want to sell this product to? Think of at least five things about the kind of person who will buy them. (e.g. Age? Sex? Income? Social class? Interests?)
2. Image Decide what kind of image you want to give to the product. Choose two adjectives to describe it and then think of a picture and a headline which will communicate this image immediately.
3. Create a need Think of the needs that this product will meet. Begin the advert with questions like: Have you ever wanted ...? Are you looking for ...? Have you ever tried ...?
4. Features and benefits Give at least five benefits of the product.
5. The call to action End your advert by asking the reader to take some action. Here are a few ideas:
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Exercise 20 The text below contains several recommendations for giving effective presentations. Match the seven points below to the right paragraph.
1. Choose visuals to support the presentation.
2. Have a simple, clear structure.
3. Show enthusiasm.
4. Use Power Point.
5. Making informal presentations.
6. Dealing with nerves.
7. Considering the purpose and the audience.
a The key to a successful oral presentation is to keep things simple. I try to stick to three points. I give an overview of the points, present them to the audience, and summarize them at the end.
b My purpose or desired outcome, the type of audience, and the message dictate the formality of the presentation, the kind of visuals, the number of anecdotes, and the jokes or examples that I use. Most of my presentations are designed to sell, to explain, or to motivate. When I plan the presentation, I think about the audience. Are they professionals or nonprofessionals? Purchasers or sellers? Providers or users? Internal or external? My purpose and the audience mix determine the tone and focus of the presentation.
с When I make a presentation, I use the visuals as the outline. I will not use notes. I like to select the kind of visual that not only best supports the message but also best fits the audience and the physical location. PowerPoint, slides, overhead transparencies, and flip charts are the four main kinds of visuals I use.
d PowerPoint and slide presentations work well when I am selling a product or an idea to large groups (15 people or more). In this format, I like to use examples and graphs and tables to support my message in a general way.
e In small presentations, including one-on-ones and presentations where the audience is part of the actual process, I like transparencies or flip charts. They allow me to be more informal.
f I get very, very nervous when I speak in public. I handle my nervousness by just trying to look as if, instead of talking to so many people, I’m walking in and talking to a single person. I don’t like to speak behind lecterns. Instead, I like to get out and just be open and portray that openness: “I’m here to tell you a story.”
g I try very hard for people to enjoy my presentations by showing enthusiasm on the subject and by being sincere. I try not to use a hard sell – I just try to report or to explain. In addition, it helps that I am speaking about something that I very strongly believe in and something that I really, really enjoy doing.
Luis E. Lamela, February 11,1997 From Business and Administrative Communication by Kitty Locker, Irwin McGraw-H
